<Inventories through the roof.> I am not an expert in the drug business but would assume that it is not due to obsolescence. More than likely a slow down due to the increase in competition for Levothyroxine and a build up due to the anticipated approval for Levothyroxine which was received.
<Earnings in decline this year.> All of the money I have made in the stock market has been with finding companies that are ready to turn around. I don't like to jump on any band wagon where the price is heavily dependent on expected future earnings.
<Sells at 5X tangible book value.> The company got this way when it did the deal with Jerome Stevens. I would assume that the deal would not have been done had management thought it was not beneficial (double negative).
<What am I missing ??????????> Expectations. You are looking at the historical performance of the company. Try projecting where the company should be 2 years from now.
<I am neither long or short LCI. Am staying away until compelling reason to buy emerges.>
I cannot fault your very conservative position. But when a compelling reason to buy emerges, everyone will know that reason and prices will adjust accordingly. Hopefully, you can beat them to it.